The most obvious reason is “the market”.  Thanks to a media-driven frenzy in recent years sellers began to believe that all homes sell quickly.  Not only was that not completely true then, it’s not at all true now that the frenzy is over.

The next reason homes don’t sell (and your agent will be quick to point out) is price.  Gone are the days when you could price high and then negotiate.  Today’s buyers are not even looking at overpriced homes.  Well-priced homes attract buyers who make reasonable offers.

Unfortunately, in this market, price is a moving target.  A list price that seems reasonable today may put a seller on the high end in thirty or sixty days if the market shifts.  Then the seller is “chasing the market” as he tries to play catch-up with prices in the area.

There are a lot of creative variations on price.  Sellers may offer to pay the buyer’s closing costs, association fees, or buy down the mortgage rate.  In most cases a straight price reduction is a better strategy because the lower price may put the home in a range that has a broader appeal to prospective buyers.

No matter how the home is priced, sellers need to prepare to negotiate.  Buyers have read that they can get homes by making low offers.  Sellers shouldn’t be offended at a low contract but should counter the offer and continue to counter as long as it takes to reach an agreement.

Probably one of the most difficult problems to solve for a home not selling is the home itself.  Unfortunately, not all home problems can be fixed.  The family room that is too small by today’s standards and the backyard that overlooks the highway are negative features that can’t be fixed.  However, a buyer will be more inclined to live with the negative features when the benefit of the right price outweighs the negative. 

The next thing to do is make sure the home is available to be seen.  Whether or not you are using a Realtor to sell the home, make sure the home is available seven days a week.  Putting restrictions on showings that make it difficult to accommodate a buyer’s schedule means that some buyers will not see the home at all.

However, there are plenty of little things a seller can do that will not only make the home sell faster, but sell for a better price.  It’s called “staging”.

Think of a model home.  It’s open and uncluttered, light and airy, clean and neat.  But even the oldest home can duplicate that feeling.  Here is a checklist to follow:

1) Make any necessary repairs, even small ones.  Little things like a cracked wall outlet or big ones like an air handler than no longer works properly need to be addressed. 

2) Clean like Martha Stewart is expected for dinner.  Every nook and cranny needs to sparkle.  No dust bunnies, no stains, no dirty windows, no scuff marks on the walls.  If the paint if dingy, or even a very taste-specific color, you might consider fresh paint in a neutral lighter color.

3) There is no second chance to make a first impression.  So look outside and address how the home appears.  Enhance tired landscaping or cut back overgrown plants.  Add color if necessary with some seasonal annuals.  Make sure the lawn is treated for weeds and fertilized on a regular schedule.

4) Now the one everyone hates – pack it up or throw it out.  The longer you’ve lived in the home the more “stuff” needs to go.  If you can’t bear to part with it, store in at a friend’s home or rent a storage unit.  Clean out the closets, the pantry, the garage, cabinets, vanities, drawers, etc.  “Empty” looks bigger than “full”.

5) Now clean it off.  Remove most of the wall art you own and repair any holes.  Put away most of what is sitting on counters and tables and shelves throughout the home.  Be especially good about removing photos of family members.  Your buyer will be better able to project themselves in the home if they don’t see other faces looking back.

A true professional stager will do all this and more.  Their talents include rearranging furniture and using props and accessories to highlight features of the home the typical seller will overlook.  It may involve putting furniture into storage or making physical changes to the home but the end result is a home that will have the greatest appeal.

You may have read these things or your agent will have told you many of them and maybe added a few, like adding scented candles or potpourri to freshen rooms.  Turn on lights and open blinds when expecting a showing so that the home looks more inviting.

As a final thought, decide what your home’s best feature is and make sure you have staged the home in a way that will make that clear to your buyers.  Then they will fall in love with the home just as you did.

You and/or your agent did a lot of research and you took your best guess as to where to list your home but you’ve had no showings and it’s been 3 weeks. It’s time to reduce. Any time your home sits with no showings or very few for the market, it’s time to reduce the price.

It means that the buyers looking in your price range are rejecting your home without even seeing it. Sometimes it’s because it compares poorly to other homes in that price range on paper or on the internet. Sometimes it’s because your home is “invisible” to the actual potential buyer because it’s price in a range they are not looking in.

The rule of thumb used to be to always price a home ending in a “9” price point. For example, $99,000 or $249,000. Just as in retail stores, prices ending in a “9” appear cheaper from a psychological standpoint. The internet has changed that to an extent.

The customer who wants a home that might include that home at $249,000 would miss it if they were searching for homes from $250,000 to $275,000. Had that seller been priced at $250,000 it would not only show up in the search but might very well be the least expensive home found. At $249,000 it’s missed entirely.

Now a seller must take into account that most buyers begin their search on the internet and will look in price ranges. If a price reduction won’t take the home into a new search category it’s probably useless. For example, reducing a price from $112,000 to $106,000 won’t capture new lookers, but dropping it from $106,000 to $100,000 probably will.

Even after a home is listed, a seller should think like a potential buyer and from time to time “surf the net” to see how the home stacks up an a variety of searches.

Bottom line? No showings, reduce the price. You can’t negotiate a contract till you get a buyer to write one.

Why are model homes decorated so beautifully? Why do builders spend so much effort on seemingly minor details? It’s because they know that those details make homes sell. Homeowners can do the same things to make their homes sell faster.

The first thing to think is “clean”. Every surface should be cleaned and stay that way. Grout may have to be professionally steam-cleaned if it is discolored. Walls may have to be repainted if scuff marks and hand prints won’t come off with soap and water. Kitchens and baths should be cleaned to the point they gleam.

The second thing to think is “cleaned out”. Clutter is taboo. Clean it off. Clean it out. If need be, have a garage sale or donate excess items to charity. Kitchen cabinets, vanities, closets, should appear spacious, not crammed full. Box up out of season clothing or seldom used belongings and store them in an attic, with a friend, or in a rented storage unit. Counters and furniture should have a minimum of personal possessions on display. Rule of thumb – most people should pack away 75% of personal items and wall hangings (some people are exceptions) before putting a home on the market. Garages should hold vehicles, maybe bicycles, and not much else. Too many people use the garage as a staging area or storage room and this does NOT help sell a home.

The next thing is “fixed”. If there is something not working or not working properly, fix it. It’s a good idea to pay for a professional home inspection BEFORE putting the home on the market. A home inspection may uncover problems that can be addressed in advance that may make a prospective buyer shy away from making an offer if left undiscovered until later. Minor wood rot, small leaks, torn screens, etc. are easy to repair.

Then think “maintain”. If the air conditioning system hasn’t been serviced recently it may be time to have that done. And always remember to clean filters regularly. Touch up paint as needed. Make sure doors and windows open and close smoothly and without squeaks or groans.

Finally, think “first impressions”. How does the home appear from the outside? If the home or roof needs pressure washing, do it. Maybe the home doesn’t need a full repainting but perhaps the trim and door could look better. Old rusty or pitted doorknobs or door knockers should be replaced. Mailboxes and house numbers should look fresh and shiny.

Lawns should be fertilized and treated for pests. Regular yard maintenance should include trimming plants, edging, mowing and weeding. Plants should not block windows or doors. Flowering annuals can make a huge difference in curb appeal for very little money. And mulch defines areas and adds color.

Of the five senses, everything so far has related to sight. Don’t forget the importance of smell in selling a home. Moldy, stale odors should be addressed at the source. Clean is good but the smell of cleaning products should not dominate. It might be a good idea to hold off on frying fish or other smelly foods for awhile, but there is nothing that beats the smell of fresh-baked cookies.

All these suggestions can make a difference, but if you want an objective opinion on your home, your Realtor can offer good advice. And everyone has a friend who has opinions about everything. This is one time it will come in handy! Prepared properly a resale home can show just as well as a model and be just as appealing.

Can this blow up a sale?

Have you ever gotten into a battle over a $3 soap dish? If you have, then you’ve been involved in a contract that did not spell out in writing what personal property was included.

While everyone knows that they should never assume anything, those same people buy and sell homes all the time without putting in writing what personal property conveys and what does not. “Fully furnished” or “turn-key furnished” are descriptions, but are NOT substitutes for a full inventory that is a part of the contract.

Just listing what is NOT included may help to clarify the issue but the contract must still contain a written inventory to be clear in legal terms. Many sellers think that buyers assume that personal items are not included but what is considered “personal” is subject to interpretation.

Personal items are not the only source of misunderstandings. That chandelier that has been in the family for generations is considered included as a light fixture unless it is written into the contract as an “exclusion” and agreed upon by both parties. That goes for appliances, ceiling fans, child-proof pool fences, and the fancy shower head in the master bath. Even Aunt Betsy’s prize rose bush can become an issue.

Property is typically conveyed in the manner it appeared on the day of the contract. Substitutions are not allowed unless both parties agree in writing.

The phrase “in writing” is the operative one. Clear, written agreements leave no room for interpretation. If an inventory is not available on the day the contract is written, language can be added to state that a written inventory must be submitted and agreed to by both parties within a certain number of days or the contract is voidable.

EVERYTHING to be included must appear on the inventory. A ”turn-key furnished” home inventory will list everything down to the last teaspoon and soap dish. Do that and no one will be shouting for a lawyer because a $3 soap dish went missing at closing.

It doesn’t matter whether you are the buyer or seller, when it comes to contracts. No one wants to pay too much or accept too little. No one wants to be taken advantage of. Everyone wants to win.

A good contract is a balancing act between price and terms. Written well, there are things in the contract to benefit both sides. So why would someone write a contract that appears lopsided?

Let’s start with terms. One of the most common terms is the financing contingency. Unless the buyer is offering all cash, there is usually a financing contingency. But unless the terms of the contingency are spelled out, the seller is left wondering just what kind of loan the buyer is going for and if they have a snowball’s chance of getting it.

So a good financing contingency will spell out the details of what the buyer is attempting to do: amount of the mortgage, type of financing, down payment, etc. If a buyer fails to be approved for the financing spelled out, he has the ability to “walk” from the contract and all deposits are returned to him. Being pre-approved for a mortgage gives the buyer the ability to have a shorter mortgage approval date and therefore provide more security for the seller.

But that binder deposit is the only assurance that the seller has of the buyer’s good faith. So the larger the deposit, the more assurance the seller has of the buyer’s intent.

How soon is the closing date? A typical closing might be 30-45 days from the date of acceptance of the contract. However, this is negotiable. A faster closing might make the seller happy to have cash in hand. Longer closings will usually require some concession or a larger down payment to assure the seller that the property will close as scheduled.

Inspection clauses are built into the typical contract and are written to be fair to both sides. Changing those terms or timelines can tilt the favor to one side and make the contract less likely to be accepted.

In most states, written verbiage in a contract supersedes the typewritten. So be careful not to negate a portion of the typed contract by writing in unnecessary notes.

Finally, we get to price. If you are the buyer, how much to you offer? If you are working with a Realtor, that person should provide you with information regarding recent sales and market trends.

For example, if most homes in an area are priced very similarly for quality and other factors, then they should have similar market values. If those homes have sold for approximately 5% off list price and this home is listed realistically, then the seller will have the expectation of something around the same number.

A buyer who wants to test the seller may come in a bit lower, but too much lower and the result is an insulted seller who won’t take the contract seriously.

The reverse is true as well. The seller who refuses to budge on anything runs the risk of offending the buyer, who probably has a second choice lined up and may just move on.

No one intentionally writes a “bad” contract. Mis-information or advice is more common. But in real estate contracts are about “homes”. The seller is emotionally attached and the buyer is becoming attached as well. So both parties need to recognize that there is more going on than just business. A well-written contract with reasonable price and terms is likely to be negotiated and accepted. When that happens, both buyer and seller win.

Marketing a home properly

When you hire a real estate professional you make that decision in part on the marketing plan the agent has for your home. The agent has two groups to market to: (1) - potential buyers and (2) - other agents (who are working with potential buyers).

It’s All Visual

Both agents and buyers will be exposed to your home through a variety of sources, in print and online. Television is another medium used more and more. All of these are VISUAL mediums. And with digital photography there are more opportunities than ever to expose the features that make a home desirable and unique.

At a minimum, an agent should take a photo of the home for the multiple listing service. The service itself can send a photographer but the listing agent is a better judge of what shot best serves the home.

In addition, the multiple listing service allows additional photos that both agents and potential buyers have access to. At a minimum, the agent should take a number of shots to highlight the features that are most appealing to a prospective buyer.

More is NOT better

The home is not being documented in order to rebuild it. The purpose of the photo is to entice someone to inquire about the home. Photos of guest bathrooms, laundry rooms, and empty spare bedrooms are unnecessary unless they are so stunning they will inspire someone to call. Too many boring photos only frustrate the viewer, who may move on to another property.

Nowadays agents have access to virtual tours as well. Sometimes these include still shots but they also allow panoramic shots that can show off a view, the layout of important rooms, etc. Every agent has access to this important tool and every listing deserves one. There is a cost to the agent, but the value to the seller’s home is huge.

It has been proven that buyers who are using the internet to look for a home (and over 80% begin their search that way) ignore most listings that don’t provide multiple photos and virtual tours. Many websites that provide those searches favor properties with virtual tours and multiple photos and give them priority in their display sequence. The home with no photos is likely to end up last in the search list.

Check It Out

All sellers should ask their agent for a copy of the listing as it appears in the multiple listing service (and most provide it without being asked). But they should also look at it online themselves to see how the photos appear and how many there are. More can always be added if an important feature of the home was overlooked or a shot didn’t turn out just right.

Sellers should also view the virtual tour online to see how easy it is to view and if the captions with the photos give added information to the viewer. (Some agents overlook this opportunity to point out highlights in the shots.)

Sellers should also look at both the agent’s website and the company’s website to see how homes are searchable. Can a potential buyer define the search criteria or do they just get a list of homes and one photo? Are there links to the visual tours and multiple photos? Is there a mapping feature? (These are good things to check out BEFORE hiring the agent.)

Some agents take the visual marketing of the home extremely seriously and may create CDs of the virtual tour to have at the property for a prospective buyer to take with them. Ask your agent how they plan to expose the property to the market. If their plans are aggressive and take advantage of the technology available, chances are your home will be found by the right potential buyer. If not, maybe this is the wrong agent or company to do the job.

Hiring an agent to list your home is a complex issue and marketing should be a part of the consideration. After all, your home deserves it.

Hire a full time Realtor

What’s the worst that can happen if you use a part-time hairdresser? Maybe you wear a hat for a month but then it’s over and you can fix the problem. What’s the worst that can happen if you use a part-time brain surgeon? Let’s not go there.

Obviously when it comes to your health or other important matters you want the skills and advice of a full-time professional. Why should real estate be any different? After all, your home is your largest single asset.

At any given time, there are thousands of homes on the market in dozens or even hundreds of neighborhoods. No real estate agent will know everything about every one, but a full-time agent will be able to understand the trends that are taking place because they are out there every day.

Full-time agents spend time studying market information, attending seminars, pre-viewing homes, visiting builders, etc. All the things that take time. They spend time with home inspectors, lenders, and other related professionals. Not only do they take the required continuing education that the state demands, they earn designations that demonstrate additional skills and education.

Laws and regulations are constantly evolving. Required disclosures change, as well as contract language. A full-time agent will be better prepared to discuss those changes and their impact.

Technology has also demanded more skills of an agent. With over 80% of home buyers beginning their search on the internet, today’s agent must understand websites, virtual tours, digital photography, and search engine visibility. Most full-time real estate agents are willing and able to invest the time and money it takes to use technology in ways that benefit their customers.

Finally, you want a skilled negotiator in your corner, whether you are buying or selling. Negotiating isn’t a skill easily acquired or maintained if it’s only used occasionally.

That brain surgeon isn’t paid for the time spent that day on that operation. He is paid for the time spent becoming the skilled professional that will ensure a successful outcome. Whether you are choosing a brain surgeon or a real estate agent, you deserve someone whose primary focus is you!

Make your home stand out from the market

The rules have changed. Everyone knows that supply far exceeds demand right now on resale homes. In a normal market, a home priced competitively would receive showings and within a reasonable time, an offer. That is not always the case these days.

Right now there are well-priced homes on the market that are not even getting showings. Buyers are still holding back and more homes get added to the inventory.

This is what can happen next:

• Let’s say a home is listed for $250,000 in January and that price puts it mid-way between competing properties. Each month new homes are listed and others on the market drop their prices. Within a matter of months, that $250,000 home owner finds himself at the top of the market among his competition.

• A better strategy would have been to list the home in January at the low end of the market, making it the best VALUE among competing homes. It is likely that it would have been the next home to sell.

• Now even if the $250,000 home drops its price it’s still the mid-priced home and other homes are a better value. So the seller has to “chase the market”. Had he “led the market” he may well have been sold.

Often Realtors are the ones who deliver the information about what the market is doing and the inclination is to “shoot the messenger”. Just as doctors sometimes have to give unpleasant test results, so do real estate agents. But sellers need and deserve the facts so that they can make informed decisions.

Pricing a home right at the very beginning can insure a faster sale and better net proceeds to the seller.

Buying a home is a big decision involving a large investment. Maybe the biggest one you’ll ever make. So make sure you make an informed decision.

It would be nice to be psychic or to have a real estate agent who is, but that isn’t possible. No one can just look at a home and tell that it is in tip-top structural and mechanical condition. You can get clues as to how well a home has been maintained, but even brand new homes can sometimes harbor flaws.

That’s where a good home inspector comes in. A thorough home inspection can look for cracks, leaks, mechanical or electrical problems, etc. Most sales contracts entitle the buyer, at their own expense, to conduct a home inspection. There are time frames that must be adhered to or the inspection results will not represent a contingency to the contract.

There are a number of inspections the buyer may choose to have done. The most common is a general home inspection. The home inspection will check to see that all major systems are in working order – both structural and mechanical. That means that the item is working in the manner it was intended to operate.

For example, the air conditioning system cools the home properly, the kitchen appliances all work, etc. He will also look for leaks around plumbing fixtures, windows, doors, etc. Electrical outlets and appliances will be checked.

The home inspector will check for obvious roof problems but if he feels a more thorough inspection is called for he will recommend the buyer hire a roof inspector. A roof inspection will include a check for current or past leaks but can NOT be an accurate predictor of roof life – even roof inspectors are not psychic and can’t predict the future.

The buyer is also entitled to have a WDO inspection. That’s an inspection for termites or any wood rot (caused by other wood-destroying organisms).

Radon gas is invisible and odorless and can only be detected by a certified radon inspector who uses the proper equipment and evaluates the results. Since radon gas is suspected of being a cause of lung cancer, an inspection for it will show if it is present in high levels, and so, it can be mitigated professionally.

Mold is a relatively new inspection item and is yet very loosely regulated. Most homes have some mold but the only mold that should be mitigated is toxic mold, unless a family member has an allergy or medical condition that is exacerbated by the presence of other molds.

Most sales contracts allow the seller to fix the problems, to give a credit for their repair or the two sides can negotiate a reasonable solution. Sometimes the result is the voiding of the contract. However, if both buyer and seller are realistic and reasonable they should be able to come to a resolution that satisfies both parties.

Guess what? A contract is a legal document and everything pertinent needs to be spelled out and in writing. That’s it.

Nothing more complicated than that.
Unfortunately, too many agents and customers “assume” that the contract means this, that, or the other, when, in fact, it says something different.

Duh! Dates and deadlines are real and have consequences. Exceptions to those deadlines have to be agreed upon and in writing if something changes.

I see more contracts fall apart or end up in a dispute because someone thought that something would be okay because it was okay in another situation. Well, it probably wasn’t okay then either but they didn’t get caught.

Help on contracts for agents or customers is a phone call away. Don’t write or agree to something if it isn’t clearly spelled out. And for heavens sake, don’t assume!